Taiwan Margin Debt Hits Record NT$803.5 Billion, Central Bank Sees Risks Contained

Taiwan’s buoyant stock market has encouraged investors to increase leveraged positions, supported by strong demand for shares tied to the island’s artificial intelligence supply chain. Margin financing is closely watched because elevated borrowing can amplify forced selling and margin calls during a market reversal, making it a key gauge of potential stress for the Central Bank of the Republic of China (Taiwan).

Outstanding stock-market margin loans climbed to a record NT$803.5 billion in June, surpassing NT$800 billion for the first time. Central bank officials said strong performance by Taiwan’s AI supply chain had attracted capital, while banks maintained ample liquidity coverage ratios. The central bank assessed overall leverage risks as manageable for now, but urged investors to remain alert to the risks of borrowing to buy shares.